Changes in HR practices have helped an NHS Wales organisation save more than £738,000 a year and boosted employee wellbeing, new research has revealed.
In a study backed by Birkbeck, University of London, a shift in an employer’s approach to HR – specifically by not carrying out disciplinary investigations in the first instance and using informal methods of resolution, such as coaching and mentoring and training – was found to cut sickness absence and improve wellbeing.
According to researchers, NHS Wales organisation Aneurin Bevan University Health Board, which has more than 16,000 employees, implemented the HR changes and benefited from a 71% drop in employee investigations. It also saw a reduction of annual sickness absences by 3,000-plus days and annual savings of more than £730,000.
Dr Kevin Teoh, senior lecturer in organisational psychology at Birkbeck, University of London, said: “The findings support wider research which shows that we need to focus on improving the working environments and experiences of healthcare workers as a key part of supporting their wellbeing. Often the response has been that this is not possible, or that nothing will really change. However, this intervention provides evidence demonstrating that we can, and should, make such changes.”
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HR and wellbeing teams at the health board worked together to help staff managing disciplinary processes. They encouraged the use of informal resolution techniques through coaching, mentoring and training, leading to a great reduction in formal investigations.
Conversely, the study showed that poorly designed and implemented company policies had detrimental effects. It suggests a proactive approach to improving processes would lead to a cultural shift that would minimise employee harm.
Andrew Cooper, lead author of the study and head of programmes for the employee wellbeing service at the health board, added: “This research highlights the importance of taking a last resort approach when considering the use of formal HR policies. We know that the related processes can harm the individuals involved in them and the organisation can also be negatively impacted too. By handling these processes better, we can reduce harm to our employees and organisational cultures.”
Leadership at the health board supported the changes, working with line managers and union representatives to improve the investigation process.
The number of new disciplinary investigations dropped from 50 a few years earlier to just 15 by June 2023, saving the organisation around £738,000.
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